Imagine a world without price tags. A consumer can buy a big screen TV that he's had his eye on, but he would not know the price until his credit card bill came in the mail. Although this seems like a ridiculous proposition, it is exactly the world the average American lives in when he or she seeks medical care. As reported in the Wall Street Journal in February and June of 2005, knowing the cost of a doctor's visit has long been a missing piece of the health care decision-making process.
One previously unachievable approach is called “price transparency.” Through price transparency, consumers would be able to know what they can expect to pay at the physician's office before visiting the physician. However, in previous health care systems, no health insurer has ever been able to provide this level of detail to its members. The reasons for this have been varied—contractual issues, complexities in the rates physicians agree to accept from insurers, and concerns about consumers shopping for health care on price alone.